Only knowledge of the product can protect you against mis-selling

It's important to question the intermediary so that you know more about the product

On April 24, the news that Franklin Templeton, a highly-reputed fund house, would close down six debt funds sent shock waves among investors. The fund house attributed the closures to lack of liquidity and the high level of redemption pressure it was facing. Hopefully you are not among those whose money is stuck in those six funds (totaling around Rs 25,000 crore). Those investors face uncertainty not only regarding when their money will be returned but also about how much they will finally see. 
 
Chasing higher risk: Even for those not directly involved, this episode carries several useful lessons.